Ministry of Finance approved 5% GST on Cereals, Pulses and Flours

Retreating the key takeaway from the 9th September GST Council meeting, the Ministry of Finance issues a notification regarding recommendation of 5% GST rate on cereals, pulses and flours etc. put up in unit container and bearing a registered brand name.

The notification read that for brands registered as on 15.05.2017 will be deemed to be a registered brand for the purposes of levy of 5% GST, irrespective of whether or not such brand is subsequently deregistered.

Also a brand registered as on 15.05.2017 under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5% GST.

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A brand registered as on 15.05.2017 under any law for the time being in force in any other country shall also be deemed to be a registered brand for the purposes of levy of 5% GST. d) A mark or name in respect of which actionable claim is available shall be deemed to be a registered brand name for the purposes of levy of 5% GST.

The Ministry notified that notifications giving effect to the Council’s recommendations relating to changes in GST rates on goods and conditions appended thereto are proposed to be issued on 22nd September, 2017.

Rate of 5% GST will apply if on brand name an actionable claim or enforceable right in court of law is available.

In this context, these notifications also provide that this 5% GST will, however, not apply if the person concerned voluntarily foregoes any actionable claim or enforceable right on such brand name, subject to the conditions that the taxpayer

a) files an affidavit to the effect that he is voluntarily foregoing his actionable claim or enforceable right on such brand name with the jurisdictional Commissioner of Central Tax or State Tax, or the jurisdictional officer of Union Territory Tax, as the case may be, and

b) prints in indelible ink, both in English and local language on each such unit container, that in respect of brand name printed on the unit containers he has voluntarily foregone his actionable claim or enforceable right.